Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below.

		Regular		Deluxe		Total
Units produced		100,000		300,000
Prime costs		$7,800,000		$35,400,000		$43,200,000
Machine hours		100,000		500,000		600,000
Engineering hours		200		1,800		2,000
Receiving orders		400		1,200		1,600
Inspection hours		700		1,400		2,100
Overhead costs:
Machining		$9,000,000
Engineering		1,040,000
Receiving		640,000
Inspecting products		273,000

Required:

1. Calculate the four activity rates.

Machining rate (per machine hour)	$
Engineering rate (per hour)	$
Receiving rate (per order)	$
Inspecting rate (per hour)	$

2. Calculate the unit costs using activity rates. Round your answers to the nearest cent.

	Unit cost
Regular (per unit)	$
Deluxe (per unit)	$

Calculate the overhead cost per unit. Round your answers to the nearest cent.

	Overhead Cost
Regular (per unit)	$
Deluxe (per unit)	$

3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity.

	Cost assignment
Regular	$
Deluxe	$